Global markets extend slump on Spain bailout fears

Asian and European stock markets dived on Wednesday and the euro hit a new 22-month dollar low on mounting concerns over a potential Spanish bailout, dealers said.

By (AFP)

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Published: Wed 30 May 2012, 3:47 PM

Last updated: Tue 7 Apr 2015, 12:55 PM

Investor sentiment also took a hit as China dashed hopes that it would introduce fresh stimulus measures to boost its easing economy.

In late morning trade, London’s benchmark FTSE 100 index shed 1.35 percent to 5,318.53 points, Frankfurt’s DAX 30 fell 0.97 percent to 6,334.86 points and in Paris the CAC 40 dropped 1.35 percent to 3,043.11.

Madrid’s IBEX 35 index meanwhile tumbled 1.51 percent to 6,157.20 points, as the interest rate on Spanish 10-year government bonds continued to creep towards 7.0 percent — a level deemed unsustainable by analysts.

And the European single currency plunged to $1.2439 — striking another low point that was last seen in July 2010.

Across in Asia, Hong Kong stocks tumbled 1.92 percent, Tokyo fell 0.28 percent, Seoul slid 0.27 percent, Shanghai dropped 0.21 percent and Sydney shed 0.49 percent.


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